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Prime Minister Narendra Modi opened the 8th edition of the India Mobile Congress (IMC) 2024, Asia's largest platform for technology, media, and telecommunications, today at Bharat Mandapam. The event, which is being hosted by the Department of Telecommunications (DoT) and the Cellular Operators Association of India (COAI), will take place in Pragati Maidan in New Delhi from October 15 to October 18.
Union Minister for Communications and Development of North Eastern Region, Jyotiraditya Scindia, in his address at the event, spoke on the ongoing battle on spectrum allocation for Satellite communication.
He clarified saying, "This falls clearly under Schedule 1, meaning that for Satcom, the spectrum will be allocated administratively . However, this does not imply that the spectrum comes without cost. The pricing will not be decided by you or me; it will be determined by TRAI. In fact, TRAI has already circulated a paper on this matter. Additionally, we have a regulatory authority for telecom that has been constitutionally empowered to set the administrative pricing."
Administrative Allocation of Satcom Spectrum: India's Global Approach
He added, "I am confident that they will come up with the best pricing approach, provided it is done administratively. Satellite spectrum, globally, is allocated administratively, and India is no different in this respect. If we decide to auction it, we would be deviating from the global norm."
He explained , "For those with an understanding of engineering, it's important to note that satellite spectrum, particularly at high frequencies (beyond 7-8 GHz), is shared spectrum. When the spectrum is shared, pricing it individually becomes complicated. The current approach does not price individuals for shared spectrum."
There are many factors at play in making this decision, which is why countries worldwide follow a certain model. India is, essentially, doing the same.
The recent debate over satellite spectrum allocation has highlighted differing perspectives within the telecom industry, with contrasting views on how the spectrum should be managed. A consultation paper issued by the Telecom Regulatory Authority of India (TRAI) has sparked discussions on whether satellite spectrum should be auctioned or assigned administratively, with key players raising concerns about the impact on competition and fairness in the market.
Some industry players have raised concerns that the consultation document does not sufficiently address the need for balanced competition between satellite and terrestrial networks. They argue that the current process may hinder stakeholders from providing fully informed feedback, potentially leading to recommendations that are open to legal challenges. These concerns centre around the belief that a level playing field is crucial for maintaining fairness in the market.